The JV's charter capital will be 6.6 billion rubles ($250 million). According to an independent assessment, OMZ shares contributed to the new company are worth $125 million, while Metalloinvest has contributed $100 million in equity, and will pay the remainder in cash.
The new company will be registered in the Urals city of Yekaterinburg.
The head of Metalloinvest, Nazim Efendiyev, said on Friday that enterprises making up the new JV hold about a 40% share of the Russian market for metals and mining equipment. However, "we should try to achieve 60%," he said.
Efendiyev said legal procedures to establish the venture will be completed in 90 days.
OMZ (formerly United Heavy Machinery), controlled by Russian energy giant Gazprom, is one of the country's largest integrated heavy industry companies. It specializes in equipment and machinery for the nuclear energy and mining industries, and has clients in more than 30 countries.
Metalloinvest is one of Russia's leaders in the mining and ferrous metals sector. The holding includes iron ore producers Lebedinsky Mining and Processing Plant and Mikhailovsky Mining and Processing Plant, Urals Steel, Oskol Electrometallurgical Combine, and the Ormeto-Yumz machine-building plant.
